Seanad debates

Wednesday, 10 November 2004

Competitiveness and Consumer Protection Policy: Statements.

 

11:00 am

Photo of Paul CoghlanPaul Coghlan (Fine Gael)

I look forward to hearing from Senator Leyden on that as he was the first Senator to introduce the concept of "name and shame" to the House. Visitors to the website told us their stories first-hand. Lest the Government think rip-off Ireland is a myth, as a Minister from my part of the country stated last week, I will detail some of the e-mails received on this issue. One sober Dubliner wrote that by the time he had paid the entrance fee to a local pub and bought one glass of cola, he had forkedout €11.50. A ripped-off, health-conscious customer was charged €18.64 for a small organic chicken in a local supermarket. One visitor to the www.ripoff.ie site stated that he paid €19,000 for his new car. Later, a kind friend e-mailed him a link to a German car dealer who was charging €10,500 for the same vehicle. New homeowners e-mailed the website complaining that the builders requested €70 to install the necessary wiring for a doorbell. The cost of a bottle of Irish whiskey — distilled and bottled in this country — is cheaper in Boston duty free shops than in Irish airports. Rip-off Ireland is now as topical as the weather in conversation.

The solution to the problem must be rooted in a vigorous adherence to the principle of competition, ending the practice of the Government becoming the godfather of rip-off through more stealth taxes and increased charges. It must also be rooted in respect for the consumer in the same way as producers, employers and unions are respected. It must involve a reassessment of social partnership and a reappraisal of how things are done. The Fine Gael Party has already taken the first step by outlining its proposals on the creation of a consumer rights enforcer. I was glad to note the Minister spoke about introducing a similar post.

However, we propose that the consumer rights enforcer will conduct regular price surveys, highlighting good value while naming and shaming those charging excessive prices. The enforcer would create a price league website with tables on all major products and develop codes of conduct for service providers and retailers on issues such as passing on exchange rate movements. The enforcer would also devise and promote a good practice provider quality mark for suppliers of goods and services that agree to be bound by relevant codes of practice. The enforcer would work with local authorities to drive a pro-consumer agenda at local level involving regular price surveys and measures that protect consumers' interests against local cartels. The enforcer would also have the power to impose fines for non-display of price lists in petrol stations, pubs, hairdressers and restaurants up to a maximum of €3,000, from the current level of €127.

The enforcer would also represent the consumer in national partnership agreements. Recent agreements have been dominated by the producers with little thought given to consumers. As long as employees have trade unions, employers have IBEC and both have the Government's ear, the consumer is lost. The Minister has recognised this and spoke about his plans to address the situation, which is welcome. Without that powerful advocacy, prices soar, costs increase, competitiveness is eroded and rip-off Ireland thrives.

It is time for action to be taken. In his remarks, the Minister has shown he is prepared to address matters. We wish him well for the sake of the economy. To date, little has been done in this area and much must be done. I hope the Minister has a greater period in the Department of Enterprise, Trade and Employment than he had in the Department of Health and Children.

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